Head to Head Comparison: BridgeBio Pharma (NASDAQ:BBIO) & Sol-Gel Technologies (NASDAQ:SLGL)

Sol-Gel Technologies (NASDAQ:SLGL) and BridgeBio Pharma (NASDAQ:BBIO) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Profitability

This table compares Sol-Gel Technologies and BridgeBio Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sol-Gel Technologies	-14.25%	-11.80%	-9.39%
BridgeBio Pharma	-329.25%	N/A	-85.69%

Earnings & Valuation

This table compares Sol-Gel Technologies and BridgeBio Pharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sol-Gel Technologies	$11.54 million	5.31	-$10.58 million	($1.23)	-17.85
BridgeBio Pharma	$221.90 million	42.72	-$535.76 million	($4.09)	-12.12

Sol-Gel Technologies has higher earnings, but lower revenue than BridgeBio Pharma. Sol-Gel Technologies is trading at a lower price-to-earnings ratio than BridgeBio Pharma, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

26.2% of Sol-Gel Technologies shares are held by institutional investors. Comparatively, 99.9% of BridgeBio Pharma shares are held by institutional investors. 66.5% of Sol-Gel Technologies shares are held by insiders. Comparatively, 18.2% of BridgeBio Pharma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sol-Gel Technologies and BridgeBio Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sol-Gel Technologies	0	0	0	0	0.00
BridgeBio Pharma	0	0	17	0	3.00

BridgeBio Pharma has a consensus target price of $61.35, suggesting a potential upside of 23.72%. Given BridgeBio Pharma’s stronger consensus rating and higher probable upside, analysts clearly believe BridgeBio Pharma is more favorable than Sol-Gel Technologies.

Volatility and Risk

Sol-Gel Technologies has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, BridgeBio Pharma has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Summary

BridgeBio Pharma beats Sol-Gel Technologies on 9 of the 14 factors compared between the two stocks.

About Sol-Gel Technologies

Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.